PennyMac Financial Services, Inc. (NYSE:PFSI) Q1 2024 Earnings Call Transcript

David Spector: So, overall in terms of our total debt to equity, as we’ve been got noted on the, on the page, we typically targeted around 3.5 We’ve been below 3.5 given the lower, the lower rate environment recently. We continue to add to our servicing portfolio, as we move through time and that has, has driven up a bit our non-funding debt to equity ratio, which we target roughly in the – range that we’re in now, between one to 1.5. So, overall, I think we’re in terms of the non-funding debt to equity ratio in the sort of range, we would expect in terms of the total debt to equity ratio, could be higher, but that’s really driven by overall production volumes primarily, which will be a function of the market, more than anything.

And so, we don’t expect to dramatically change our leverage profile in a, or to change our leverage profile in a meaningful way as we’re moving forward. We think we’re managing to a prudent level there and as I have discussed before, we think that in the current environment, that really results in a mid-teen, mid to high-teen operating ROE.

Eric Hagen: Got you. Okay. Thanks a lot. Appreciate it.

Operator: We have no further questions at this time. I will now turn it back to Mr. Spector for the closing remarks.

David Spector: I’d like to thank everyone for joining us on the call today. If you have any questions, please feel free to reach out to our Investor Relations team, and I look forward to speaking to you all myself, over the next coming months. Thanks so much.